US Federal Reserves Brown Book: moderate economic expansion and slowdown in some regions

 US Federal Reserves Brown Book: moderate economic expansion and slowdown in some regions

In terms of industries, the average growth rate of manufacturing, distribution and logistics, housing construction and sales of completed houses is higher than average. However, some deterioration has occurred in the bank loan portfolio in many regions. In particular, commercial loans to retail, leisure and hotel industries are expected to increase in 2021.

However, most of the respondents positive sentiment on the prospect of unemployment benefits (such as the immediate termination of unemployment benefits) and the impact of the near future on the economy have weakened.

Employment and salary

Almost all regions have reported higher employment rates, but for most regions, growth has been slow and recovery remains inadequate.

The novel coronavirus pneumonia report has difficulty in attracting and retaining workers. They note that the sharp rise in new crown pneumonia cases has led to the closure of more schools and factories, further exacerbating the labour supply problem. In some areas, companies are worried that employment will fall in the winter before further recovery comes.

Despite recruitment challenges, wages in most regions have increased at a modest or moderate rate.


Most regions reported a slight increase in the prices of means of production and end products. The impact of the epidemic on the supply chain, manufacturers are short of hands, and the rising transportation costs are passed on to consumers.

Highlights of some regional Fed reports:

Cleveland: moderate growth in economic activity and a slight increase in employment. Supply chain constraints increase transportation costs and the prices of some construction and manufacturing elements.

Richmond: the economy recovered moderately, the real estate market developed steadily, and the commercial real estate leasing industry improved. Port and truck traffic grew strongly and manufacturing activity rebounded.

Kansas: economic activity continues to grow slightly. Consumer spending fell slightly in November, but is expected to rebound in the future. The manufacturing, real estate, wholesale trade and transportation industries continued to expand, and agriculture improved moderately.